The financial advisers professional indemnity market continues to maintain competitiveness, especially in the small to medium firm sector, according to results from the latest Willis Index survey for the third quarter of 2005.
The survey shows that average premium reductions for primary layers with limits of indemnity up to £5m are continuing to vary between 5% and 25% year on year.
In relation to other aspects, the survey indicated that coverage and limits of indemnity remain largely unaltered.
Willis said there is a strong feeling that the market cannot sustain continued reductions of the order of those seen in 2004 and 2005. Willis said it believes that underwriters will have to be much more selective with ever increasing emphasis on risk management.
It also said that it sees the job of the broker intensifying with the need to constantly review programme structures, whilst exploiting market conditions, in the best interests of the client.
Willis said the survey showed that while hurricanes Katrina and Rita will not have a direct impact on accountants' and auditors' professional indemnity, it is too early to tell whether these events will cause a general hardening of the market and withdrawal of the capacity levels currently available.